-Grinding the blade, to about 6cm, little less than 2,5 inhes
-Shorten the handle accordingly
-adding support, replacing the lanyard hole tube, using Chicago-screw or similar
-tap&drill the clip again
for me , the hardest part would be to grind the blade. I have a wet grinder, which should be suitable, yet slow, it doesn’t heat up the blade when grinding, but it takes some time.
Handle would be much more simple, just take the knife apart, using Chicago-screw or similar to marry the handles together for the job, then just angle grinder, hacksaw, dremel, file, etc to get the shape right.
Some crappy pics of what I had in mind:


What do you think? Comments welcome :D